Broadcast.com (Acquired by Yahoo) Message Board

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Technology Stocks : Broadcast.com (Acquired by Yahoo)

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Jun 26 5:00 PM EST

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To: B. A. Marlow who wrote (555)	2/12/1999 11:34:00 AM
From: dpeters	Read Replies (1) of 1260

BAM You wrote: "While certain traders might purchase calls as a proxy for the stock". The correct way to use otions to put on a synthetic position in a stock is this: if you want to have the P&L charecteristics of a long position in a stock then you buy a call and sell a put of the same strike date and price. For a synthetic short you would do the oppisite. The main reason for the two trades is that you are both buying and selling volatility. And in the net stocks'options the vol is huge. Just FYI.

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